what is variable universal life insurance
Where security and financial growth meet
A variable universal life (VUL) policy combines the long-term financial potential of investing with the security of life insurance. Within an Ameritas Advisor VUL®, your clients can explore a variety of low- expense investment opportunities such as funds from Vanguard and Dimensional, so more of their wealth has the potential to go to work than in a traditional insurance policy.
Key elements of VUL coverage:
Cash Value. The client can choose to make level premium payments on a quarterly, semiannual or annual basis or choose to pay premiums monthly under a preauthorized electronic fund transfer. Premium payments are flexible, so the client can choose to change the amount or frequency at any time. The net premium after the premium expense charge is allocated to their chosen investment options (or the Fixed Account) to create the policy's cash surrender value which is 100% liquid at all times.
Support for loved ones when they need it most. From the cash surrender value each month, the expense required to maintain the death benefit is deducted. Should the insured pass away, this death benefit helps ensure their income will go to loved ones to help meet their personal or business-related income needs.
Investment opportunities. The Ameritas Advisor VUL® policy issued by Ameritas offers a variety of fund managers — all within the convenience of one product. Premium dollars can be directed into a broad range of low-, medium- and high-risk investment options advised by well-known fund managers, in addition to a guaranteed interest option (guaranteed by the claims-paying ability of Ameritas Life Insurance Corp.).
Ameritas Life offers a free asset allocation program tool to help you build a mix of investments to match the personal goals and risk tolerance of your client.
Tax advantages. Investment growth is tax-deferred, which means your clients’ money has the potential to grow faster than it would in a taxable investment.
100% liquidity. While variable life insurance should be treated as a long-term financial tool, withdrawals or loans are available from the policy's account value that can be used to fund large purchases or unexpected expenses.
Determining the cost of a VUL policy.
Get a customized proposal to help you evaluate the potential cost and benefits of a variable universal life insurance policy for your client. Every illustration includes a full expense report, which outlines year by year where each dollar goes.